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(Based in Arizona) What are my options? I would like to use 2 or even 1 years tax returns for a conventional loan with typically lower rates BUT the new Fannie guidelines calling for YTD P&L and recent two months biz bank statements may hurt me, as biz payments are irregular and most of 2020 income will deposited end of year. 

Also another potential issue- I had an exceptionally good 2019 and 2020 figures will be less, though still a healthy and sufficient amount for the house price range I would like to apply for.

Am I SOL with conventional and/or FHA? Are  nonQM or bank statement loans more suitable for my situation if I would still like to buy a home this year?

1 Answer

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answered by (40.3k points)
How much down payment do you have to put down? Bank statement loans require 20% down payment. The two months bank statements on conforming loans is used for asset information and has nothing to do with income on conventional loans. We will use 2018 and 2019 income returns on self employed income tax returns. You still may have a shot at conventional loan with 3% to 5% down payment. Please reach out to us at gcho@gustancho.com.